The Shibarium blockchain associated with Shiba Inu [SHIB] has observed a remarkable 1,557% increase in active users and is currently processing 1.76 million transactions on a daily basis. Naturally, this significant rise in blockchain activity has generated a lot of excitement within the SHIB community.
But, the question remains: Will this surge in activity drive SHIB’s breakout, or will resistance continue to hinder the upward trajectory of this meme-inspired cryptocurrency?
MACD and RSI Indicators Display Conflicting Signals for SHIB
When analyzing Shiba Inu’s MACD and RSI indicators, there are key signals that need to be taken into account. The MACD is showing signs of diminishing bars, hinting at a potential shift in momentum.
Yet, the MACD line remains slightly below the Signal line, indicating that a bullish trend has not fully materialized. Furthermore, Shiba Inu’s RSI stands at 51.42, signaling a neutral market sentiment.
Essentially, while Shiba Inu is not exhibiting oversold conditions at present, it also lacks the necessary momentum for a significant rally.
On-chain Data Reflects a Cautious Sentiment
The on-chain metrics shed light on why the recent price action of SHIB has been lackluster. The net network growth of SHIB shows a reading of -0.22%, suggesting a slight decrease in network participation. Moreover, only 0.05% of Shiba Inu holders fall into the category of large holders, which provides a minor bullish signal but fails to instill significant confidence.
The “In the Money” metric presents figures of -0.63%, indicating that most holders are experiencing a slight loss. Additionally, the volume of large transactions has declined by -4.11%, implying that significant investors have been retracting. Consequently, while there are faint bullish signals, the overall on-chain outlook for SHIB is dominated by bearish undertones.
SHIB’s Exchange Flows and Trader Sentiment
Currently, exchange reserves of SHIB are steadily decreasing, standing at 138.67T Shiba Inu tokens. Historically, a drop in exchange reserves suggests accumulation as tokens shift from exchanges to private wallets, alleviating selling pressure.
Nevertheless, in the past 24 hours, SHIB’s reserve flow has marginally increased by 0.02%, indicating potential short-term selling pressure. Additionally, the long/short ratio indicates that 52.05% of traders have taken a short position on SHIB, signaling further skepticism.
In summary, while the impressive growth of Shibarium presents promising opportunities, Shiba Inu is grappling with notable resistance on both technical and sentiment fronts.
A potential breakout is conceivable, but Shiba Inu must surmount its obstacles and enhance market sentiment in order to initiate a sustained bullish trend.